Meta shares drop after weak revenue growth, AI expenses warning

News Snapshot:

Meta Platforms disappointed investors on Wednesday with forecasts of higher expenses and lighter than expected revenue, evaporating $200 billion in stock market value and raising fears that the surging cost of AI is outpacing its benefits. Shares of the Facebook and Instagram parent dropped about 15% in extended trade following the report, with its market capitalization plunging to about $1 trillion. Alphabet shares fell 3%, Snap shares fell more than 6% and Microsoft shares fell 2%. Meta said it expects April-June revenue in the range of $36.5 billion-$39 billion, with a midpoint of $37.8 billion, compared with analysts’ estimates of...